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(Reuters) – Howmet Aerospace on Thursday raised its annual profit and revenue forecasts, aided by higher demand for jet parts as planemakers ramp up production.
Plane manufacturers are increasing their pace of production to cash in on a post-pandemic travel boom, benefiting parts suppliers such as Howmet, which counts Airbus SE (OTC:) and Boeing (NYSE:) Co among its customers.
Boeing last month said it intends to keep its 737 production ramp-up plan intact.
“The outlook for the commercial aerospace market continues to be robust, supported by demand for new, more fuel-efficient aircraft, as well as increased spares demand,” Howmet CEO John Plant said in a statement.
Howmet, one of the main suppliers of aerospace castings, now expects full-year adjusted earnings between $1.76 and $1.78 per share, up from its prior outlook of $1.69 to $1.71.
The company raised its annual revenue forecast to between $6.53 billion and $6.56 billion, from $6.40 billion to $6.47 billion. It expects 2024 revenue growth of about 7%.
Howmet’s profit rose to $188 million, or 45 cents per share, in the third quarter ended Sept. 30, from $80 million, or 19 cents per share, a year earlier.
Quarterly revenue jumped 16% to $1.66 billion.
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